Skip to content
- Russia will not allow crypto payments inside the country.
- Lawmakers insist the ruble remains the only legal payment tool.
- Regulation may expand crypto use without granting it currency status.
Russia’s top financial lawmakers have again drawn a hard line on cryptocurrency payments. A new report highlights firm resistance to using digital assets as money, even as the country moves closer to regulating the broader crypto sector.
Anatoly Aksakov, Russia’s chief crypto regulation architect, reiterated that all transactions within Russia must happen through rubles. He emphasized that Bitcoin and Ethereum cannot qualify as money under Russian law.
According to him, cryptocurrencies are only investment instruments. They are not a payment instrument from a juridical point of view between individuals or companies. Aksakov heads the State Duma Committee on Financial Markets. He stated that the lawmakers agree with the stance of the central bank on no payments using cryptocurrencies.
This move fits well into existing legislation. Russia prohibited the use of cryptocurrencies for payment in 2020. This is still the law of the land. The statement comes amid the increasing use of cryptocurrencies among the population. Citizens are embracing cryptocurrencies.
Lawmakers Stand Firm on Ruble Over Bitcoin
More companies use the tools of the blockchain. Meanwhile, legislators have absolutely no interest in changing the payment rule. They view the ruble through the prism of the sovereignty that they maintain. Challenges in this regard are simply not acceptable.
The Central Bank of Russia has always been a strong opponent of cryptocurrency growth. The governor, Elvira Nabiullina, has always expressed her concern regarding financial risks posed by digital currencies. She is a strong proponent of curtailing or fully prohibiting all activities related to cryptocurrencies.
This led to a series of conflicts within the government. The Ministry of Finance took up a different strategy. It advocated regulation rather than prohibition. It proposed legal exchanges and sound taxation rules. The central bank dismissed the strategy and opted for a China-model prohibition.
Both sides introduced competing bills. Neither law materialized. Committees froze them in place. This impasse lasted for almost four years. In this period, the use of crypto kept increasing with no comprehensive legal framework guiding this aspect. Today, this impasse seems to have broken.
Russia Signals Shift Toward Regulated Crypto Use
There are indications that the Ministry of Finance is making progress. High-ranking government officials could be heard talking freely about the regulated use of cryptocurrencies. A top aide of President Vladimir Putin was heard saying that cryptocurrencies should be included in Russia’s balance-of-payment statistics. This was a big departure from previous statements.
President Putin has also pointed out the growth of local crypto mining. Russia has enormous reserves of energy. Mining companies are expanding to different geographic locations. There is growing acceptance to consider it an industry.
Also, Aksakov himself previously stated that Russian companies have accomplished cross-border trade worth billions of dollars using crypto instruments. The main banks also see increased demand from their customers for crypto.
Another Civic Chamber member, Evgeny Masharov, echoed this point. “The industry is in such a state that it’s in urgent need of regulation,” Masharov argued. This adds to proof of the controlled crypto pivot. Russia could move to regulate use in crypto markets. However, it will not let the ruble be replaced.
Related Reading: Hyperscale Data Nears Full Bitcoin Treasury Coverage With $75.5M Holdings
